Research And Describe Risk Aversion And Risk Tolerance - 825 Words

Research And Describe Risk Aversion And Risk Tolerance (Essay Sample) Content: Risk tolerance and risk aversionInstitutional affiliationDateIntroductionRisks form part of the daily life. They can be defined as the chances of loss resulting from the uncertainties that lie upon the future happenings. They are witnessed in different areas depending on the carried activities. In the case of an investment, the risk involved is characterized by a possibility of a negative outcome that yields to losses. With the use of good rational and assessment methods, risks can be quantified and grouped to certain levels. Exploitation of the different risk levels and decision making depends on the risk tolerance level of an individual which predetermines the risk aversion factor as discussed below.Playing the gameThis would mean risking thirty thousand dollars with the hope of getting one hundred thousand dollars which is 233.33% of the amount invested. The gain would take less than five minutes to be achieved. The deal looks interesting, and someone might be temp ted to try it. The challenge in this short-term and hyper-profitable venture is figuring out a single door out of three doors that lead one to the one hundred thousand dollar fortune. It sounds more like a gamble where one is placing a bet with hope and conviction of realizing positive results. The probability of identifying the correct door is a third which indicates that the possibility of gaining from the investment is 33.33%. Therefore, the possibility of losing everything is two-thirds which indicate the uncertainty levels, that is, 66.67%.The risk factor in playing the game is significantly high which is directly proportional to the gains. In risk tolerance principle, the levels of risk tolerance are classified into three with respect to the behavior of the investors, that is, conservative, aggressive, and moderate investors (Hanna, Gutter Fan, 2001). For a conservative investor who is only willing to invest the capital where the risk levels are low irrespective of the low pe rcentage gains, he/she would opt out of the game which is often referred to as risk aversion. The conservative investor is much concerned with the process rather than the outcome. An aggressive investor geared to attain highest possible gain in the shortest period would most likely end up risking his/her capital with little thought since he/she is more interested in the outcome rather than the process (Hvide Panos, 2014). The moderate investor will weigh the two options and consider other factors before making a decision. Unlike the conservative investor, he/she is equally interested in the outcome as well as the process.Walk away the gameWalking away the game means that the potential investor prefers to remain at his/her financial position rather than making a gain or a loss thus choosing risk aversion. It is an obvious reason the person in question is not against the idea of trying a possible gain. He/she is quite certain of the levels of risks involved that if the outcome tends to the worst, he/she will end up losing everything. Probably the little money he possesses if invested otherwise in a well-calculated and assessed risk could yield to appreciable gains.This is true for a case where the risk tolerance is low as in the case with the conservative moderator. However, to realize such an outcome, the investor will be forced to take a longer period. The low tolerance levels justify his/her actions thus one is comfortable with the walk away decision which in this case is high-risk aversion levels. For an aggressive investor, walking away the deal will be faced with high negative energy. The high-risk tolerance levels of the aggressive investors reduce the chances of the risk aversion (Frijns et al., 2013). Therefore, in the wake of a walk away, the per...

What Is a Crustacean - Information on Crustaceans

Question: What Is a Crustacean? Crustaceans are animals in the Phylum Arthropoda and Subphylum Crustacea. The word crustacean comes from the Latin word crusta, which means shell. Answer: Crustaceans are a very diverse group of invertebrate animals which includes active animals such as the crabs, lobsters, shrimp, krill, copepods, amphipods and more sessile creatures like barnacles. Characteristics of Crustaceans All crustaceans have: A hard, but flexible exoskeleton or shellTwo pairs of antennaeA pair of mandibles (which are appendages used for eating)Two pairs of maxillae on their heads (additional mouth parts located after the mandibles)Two compound eyes, often on stalksSegmented bodies with appendages on each body segmentGills Crustaceans are animals in the Phylum Arthropoda, and Subphylum Crustacea. Classes, or broad groups of crustaceans, include the Branchiopoda (branchiopods), Cephalocarida (horseshoe shrimp), Malacostraca (the class that is probably most important to humans, and includes crabs, lobsters, and shrimps), Maxillopoda (which includes copepods and barnacles), Ostracoda (seed shrimp), Remipedia (remipedes, and Pentastomida (tongue worms). Crustaceans are diverse in form and live around the world in a variety of habitats - even on land. Marine crustaceans live anywhere from shallow intertidal areas to the deep sea. Crustaceans and Humans Crustaceans are some of the most important marine life to humans - crabs, lobsters and shrimp are widely fished and consumed around the world. They may also be used in other ways - crustaceans like land hermit crabs may also be used as pets, and marine crustaceans may be used in aquariums. In addition, crustaceans are very important to other marine life, with krill, shrimp, crabs and other crustaceans serving as prey for marine animals such as whales, pinnipeds, and fish.

The Utilization Of Prescription Drug - 1332 Words

The utilization of prescription drug has increased in recent times. The availability of these medications has resulted in the treatment of numerous infections and ailments. These drugs alleviate chronic pain, depression and anxiety, sleep apnea, and much more. For an efficient health system, the main goal is to provide quality health care to all patients. However, over the years, there have been many legal and health controversies over drugs and the effects that they have on the body. The process of prescription drug starts from a lab and ultimately sojourns with the end-user. The drugs undergo testing and are often developed to treat a specific disease before being reviewed by the Food and Drug Administration (FDA). Healthcare organizations use formulary systems in order to efficiently dispense prescription drugs. According to Steiner (2014), a formulary system is an ongoing process whereby healthcare organization establishes policies regarding the use of drugs. This system also identifies the best medically appropriate and cost-effective drugs to best serve patients. The process of this method includes a list of drugs approved by healthcare professionals. Some of the issues involved in implementing formulary systems stem from legal challenges such as anti-substituting or generic substituting laws, federal and state drug laws, and trademark laws (Steiner, 2014). In the case of anti-substituting or generic substituting, it is imperative that pharmacists are quiteShow MoreRelatedLabeling And Generic Medicine : Pricing And Market Share1346 Words   |  6 PagesAccording to the article â€Å"Originator and generic medicine: pricing and market share† the cost of pharmaceutical drugs accounts for a significant portion of the total health expenditure (Eon Van Der Brendenkamp, 2013). Pricing strategies are used to create affordable costs, while also providing quality for prescription drug management programs. 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Explain clearly about Economic Environment of Starbucks Coffee

Question: Identify one specific organisation that you believe has been significantly affected by changes in the business environment since 2006. Explain clearly what the effects have been. Make sure you support your comments with referenced evidence drawn from appropriate sources these would include (but should not be restricted to) the ONS, the BBC (including the UK economy site), the Economist, Sky, one of the quality newspaper sites. You may of course also use company specific websites if that is appropriate. Answer: Introduction The UK recovery since 2009 has been relatively slows; and hence faster than most of the G7 economies (Starbucks Coffee Company 2016). Over the last couple of years most of the Britain citizens are affected by less extent of UK economy. In every articles and newspaper, people are use to see the practical impact of declination of economic conditions on many aspect of multi-national companies in UK like Starbucks Coffee. According to the report of Economic Freedom (UK), the regional ranking of UK in terms of economic environment is forth with an overall change of 0.6% (Cowling et al. 2015). But in the decade of 2003 to 2013, the economic rate of UK results a gradual decline of 3.2% of GDP and government borrowing of 3% (Heo and Ye 2016). The researcher has identified some of the prevailing economic environment business conditions in UK with the help of an instance of Starbucks Coffee. Economic Environment of a business The economic environment of a business implies several economic factors like inflation, rate of increase in interest rates, employment, productivity and etc. The economic environment of UK resulting from 2003 to 2013 financial crisis that created a phenomenal deal and fear among various multi national companies in UK. In the year 2010, the economical rate of UK results declination of GDP and increase a rate of inflation values (Bateman et al. 2014). According to the report of UK Economic Outlook, the current GDP growth of UK is 2.2% with second fastest growth rate in G7 and only 0.5% rate of inflation (Tredgett and Coad 2013). The four primary economic activity resources in the business market lies with the concept of Land, Labor, Capital and Enterprise. The main purpose of economic activity is to satisfy human wants and to produce goods and services. Overview of Starbucks Coffee Starbucks Coffee is the chain of Coffeehouse that serves a variety of Coffee and Non-Coffee beverages across worldwide with a featured food of Cakes and pastries. The company operated a licensed store of more than 17000 stores worldwide (Starbucks Coffee Company 2016). The company operated its products in more than 50 countries. The company main competitors are McDonalds, Dunkin Donuts and Caribou. Besides this, the company also took part in various social and environmental responsibilities with a manufacturing concept of recyclable and reusable cups (Mahobia and Jain 2015). Figure 1: Starbucks Coffee (Source: Starbucks.co.uk, 2016) In the mid year 2003-2013, the country suffers a declination of projected growth of 7.23% which results many global companies to lease its company shares for the GDP growth (Liu 2015). Various companies in UK including Starbucks Coffee suffer a great impact of economic conditions of business. The company growth rate results a decline of 2.3%, company sale declines to 9% simultaneously (Bowen and Sisson 2013). Not only, the companies but also several individuals and banks are affected by economic conditions because this results cuts in interest rate and rise of inflation of various services. Starbucks Coffee in relation with Economic Environment According to the report, Starbucks economic earnings have dropped 21% too far, $151 million to $110 million with a revenue rose to 12% (Tredgett and Coad 2013). In the economic environment, Starbucks is at its weakest in its company history. In the year 2010, the economic rate of UK was very poor which results Starbucks to cut down many jobs and stores; incurs a heavy loss in a economy growth. The economic impact of Starbucks is directly proportional to revenues, gross value added and employment. During the mid period of 2003 to 2012, the economic environment business conditions of UK was very worst which results Starbucks like companies to rely upon international suppliers (Lee 2013). Figure 2: Starbucks Coffee Economic Environment (Source: Jang and Jung 2013, pp-35) The expenditure of Starbucks gradually increases to 63% in 2011/12. Construction costs rises to 13% which results declinations of infrastructural area (Cowling et al. 2015). Starbucks is affected by the change of Business Environment The change of business environment in UK has been occurred since 2003 (Latif et al. 2014). It affects Land, Labor, Capital and Enterprise of an economy. After a huge economic recession occurred in the year 2003-2013, UK is recovering from a significant breakdown. The recession results UK to decline its GDP growth to 0.5% but in the year 2009; UK makes a fluent changes to 5.2% respectively (Cowling et al. 2015). Many researcher and analysts believe that the International Events such as Olympic helps in getting income influx. The table below has been created by the researcher itself; which highlights UK GDP growth, inflation rate and import and export percentage worldwide. Categories 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Gross Domestic Product (GDP) 2315 2246 2350 2430 2480 2550 2660 2784 2892 3012 Inflation (in %) -0.8 -5.2 1.7 1.1 0.1 1.3 1.9 1.7 2 2.2 Export (in %) 466.9 356.4 410 478 476 478 520 - - - Import (in %) 640 480 560 638 650 645 720 - - - Figure 3: Starbucks Coffee Business Environment Strategy (Source: Bateman et al. 2014, pp-280) Political and Economical changes affects Starbucks The political and economical changes affecting Starbucks includes inflation, high rise of interest rates, price discrimination and unemployment. In the year 2010, Starbucks had to close its two outlets globally which led many employees to flush down many jobs (Wetherly and Otter 2014). Rise of inflation led Starbucks consumers to switch off the company products by incurring other foreign brands products. High rate of interests affects many individuals and company customers. Market changes affects Starbucks Emerging Marketing Gaining Power: Over the last few years UK has been suffering from constant economic issue. As UK invests and trade among themselves; the economic rate declines to 3.5% in the year 2008 (Cowling et al. 2015). The bargaining power of many UK companies tends to decline 2% simultaneously. Starbucks faces a loss of $1 million in the year 2006 (Yu 2013). Technological Changes affects Starbucks As technology is emerging day-by-day, many companies adopt the advance and innovative technology to manipulate with market segmentation. In the period of recession (2011), Starbucks adopts a system of digital networks to make its online offerings expand. Additionally, as the company faces a substitute loss of 2.3% globally; the need of digital networks estimates a flop strategy; which led company to incur a premium loss (Smith and Waters 2015). The practice of employees working outside is hurting the job market. Additionally, a concept of active packaging in the year 2011 led company to hit the market share and results many stakeholders to withdraw the monetary values invested in technological sector (Starbucks Coffee Company 2016). Global Changes affects Starbucks Global Warming: Starbucks has noticed that the climate has been frequently changed in the year 2010 in UK because of extremes rise in sea and water levels. This constant change makes the Starbucks to work even harder for creating its traditional farming resources. In the year 2008, Starbucks sees scarcity of water as a sustainability threat. This unusable threat caused Starbucks to initiate and restore UK watershed by eliminating water to National Forest System. This led Starbucks to drive more water and energy to 50% (Cowling et al. 2015). Explanation of Starbucks Effects with the help of ONS The issue that Starbucks has faced is very rational. It depends on the country economy market segmentation. The effects include political, economical, market, technological and global issue of Starbucks. The detailed of those prevailing effects with the help of ONS is explained by the researcher. Figure 4: ONS System of Starbucks Coffee (Source: Bowen and Sisson 2013, pp-110) In the year 2003, the growth of GDP in second, third and fourth remain same; whereas in 2004, it gradually declines with a very low percentage. In 2004, the mid of quarter one has seen an immense performance of 3,70,000 (in $million) which was overall good. Suddenly, in the year of 2008 and 2009 the growth rate of GDP is declining simulaneously with reference to quarter one. In the consequetive year of 2010, 2011, 2012 and 2013, Starbucks economic growth rate remains constant with normal sales value. In the overall ONS graph sheet the highest rate of Starbucks reaches to 3,70,000 (in $million) and lowest rate of Starbucks eliminates to 3,00,000 (in $million). This enhances Starbucks performance of growth rate in economic environment of UK business. Conclusion This study investigates the political, economical, technological and global impact of Starbucks in UK. The company also impacted its economy through its procurement. The company apprenticeship, GDP growth and innovation help to enhance the supply chain management side of labor market outcomes. The economical condition of UK is increasing at a substantial rate after 2012. The current GDP growth of UK is 2.2% with second fastest growth rate in G7 and only 0.5% rate of inflation. This emerges a gradual success to UK economy with its rise in GDP growth level and control of inflation rates. Many companies are utilizing and manipulating its resources by adopting and maintaining advanced system in technological sector. The companies like Starbuck raise its labor power, revenue and sales from last five years globally and worldwide after recession period in UK. 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InService Systems and Service Management (ICSSSM), 2013 10th International Conference on(pp. 487-489). IEEE. Liu, C.L., 2015. Internet Marketing Strategies and Customer Loyalty: A Case Study of Starbucks Coffee. Mahobia, H. and Jain, T.K., 2015. Starbucks: Adapting in the Indian Market.Indian Journal of Marketing,45(8), pp.37-47. Starbucks Coffee Company. (2016). Starbucks coffee shops Starbucks.co.uk [online] Available at: https://www.starbucks.co.uk/ [Accessed 29 Mar. 2016]. Tredgett, E. and Coad, A., 2013. The Shaky Start of the UK Small Business Research Initiative (SBRI) in Comparison to the US Small Business Innovation Research Programme (SBIR).Available at SSRN 2205156. Wetherly, P. and Otter, D., 2014.The business environment: themes and issues in a globalizing world. Oxford University Press. Yu, J., 2013. Promotion mix and consumer engagement on social networking sites: A cross-cultural case study of Starbucks Posts on Facebook (USA) and Kaixin (China).Quarterly Journal of Chinese Studies,2(1), p.1.